October 15, 2007

Russia to raise duty on grains but cut tariffs on dairy

Russia will reduce import duties on dairy products due to increasing prices but will export duty on grain, the finance and economics ministers said on Saturday (October 13).

Finance Minister Alexei Kudrin, speaking at a meeting with the Cabinet and lawmakers convened to discuss the problem said due to higher output, Russia will sell grains at higher prices by raising export duty.

Economic Development and Trade Minister Elvira Nabiullina told the meeting that due to the food price rise, import duty on milk and dairy products would be lowered in the near future.

The minister said on Wednesday that rising food prices were the main driver of overall price growth in the country, and would push 2007 inflation beyond the 8 percent target, to 9 percent.

Agriculture Minister Alexei Gordeyev said a state corporation should be set up to export grain.